Greece Runs Out Of Money. Again

While we are not certain how many times we have used the above headline in the past we know it is not the first time. Nor the fifth. Yet here we are again, reporting that Greece is out of money again. "Near-bankrupt Greece is fast running out of cash while it waits for its next installment of aid from international lenders, a deputy finance minister said on Tuesday, sounding the alarm on the country's precarious financial position. Greece's European partners have repeatedly promised the country will be funded through August, when it must repay a 3.2 billion euro bond, but the details of the funding have yet to be disclosed. In the absence of that money, Greece would run out of funds to pay everyday public expenses ranging from police and other public service wages to pensions and social benefits. "Cash reserves are almost zero. It is risky to say until when (they will last) as it always depends on the budget execution, revenues and expenditure," Deputy Finance Minister Christos Staikouras told state NET television" In other words just like the US yesterday, Greece has also overestimated its revenues and underestimated its expenditures; also Greece in August is what the US itself will be in about 3-4 months, when the debt ceiling is hit. Luckily, the political environment in D.C. is open and cordial, and a prompt resolution to both the debt ceiling issue and the fiscal cliff, especially as they all coincide just in time for the presidential election is guaranteed.

"[W]e are certainly on the brink, we did not receive the aid tranche we were supposed to and we have the pending issue of an ECB bond maturing on Aug. 20."

Greece has narrowly dodged bankruptcy several times before, with the government carrying out a juggling act of holding off on paying some suppliers and issuing T-bills until the next tranche of aid from lenders arrives.

The assessment of Greece's progress in meeting the terms of its bailout by EU/IMF inspectors, who are currently on a visit to Athens, is not expected until September.

Adding to the uncertainty, Greek political leaders have been wrangling over 11.5 billion euros of cuts that are crucial to appeasing the lenders.

When, oh when, will Greece just say enough to this endless tragicomedy and finally pull the plug, letting the chips fall where they may, and extricate everyone from this ridiculous reactionary headline chasing and allegiance to political "fundamentals" driving global stock markets?

Their perpetual ponzi slavery scam only loans enough money into their economy to pay a fraction of the interest on the loan. X quanity of paper flows in, X2 quanity of paper (and goods and services) flows out. It's a slavery system and it's used all over the entire planet to steal peoples labor and their wealth

The Greecian economy is not the trouble; it's the fucking European banks that aren't getting funded through the Helenic Republic's pending default. The money will flow to the banks and not the Greeks until the day some Greek pols nut-up and tell the Euro/Troika/Banks to fuck off and die. That day can't come soon enough

There will be pain either way, regardless. That is what happens when you are bankrupt. Even if they convert to drachmas, their interest rates will remain high, supressing economic growth, austerity in another form, not imposed by governments, but by free markets.

I think we both agree though that they would be better off leaving the euro and going back to their own currency. The dire economic situation would probably fix itself quicker this way instead of feeding those international financial organization. But they would still have hardships as international money flows from the private sector would be subdued for a while until they really get their financial house in order.

These banks are a menace just because they are TBTF, which means they "must" fail. To be TBTF puts you in a place where you are above the law and corruption grows. That is a fundamenatal flaw that will bring down the system

Sorry but we just returned from Greece and the economy IS in trouble. Athens was a disaster with (unreported) blockages and protests, shops closed, crowds milling, young folks dancing, etc. Oddly, most folks wanted to stay in the EU since most get checks from the EU via the government. Coffee at night is unavailable in some coffee shops (don't ask - a stupid regulation). The two words used by waiters was "not available". Folks were hawking everything - one lady tried to sell her sister's home!

The deluge of locals trying to be "guides" for the ruins was scary. Students were sklipping class. Two 20 somthing guys worried what would happen when the government stopped "paying everyone". I love Greece, the land, the beauty and the food but this was a nightmare.

Interesting. I was in Kavala (northern Greece by the coast) a couple of weeks ago and saw none of that. You wouldn't have known there was an economic crisis, except that I didn't notice many people speaking languages other than Greek (lack of tourists?) and you had to pay cash for everything. Shops, hotels, restaurants, bars, etc. never took credit cards. As one restaurant owner explained "Cash only. This is Greece".

ghengis, you are absolutely correct; the tax-payer bailout money goes to the bank shareholders and not the people. Same as US bailout run by Fed and Treasury; several trillion dollars of wealth transfer from the 99% to the 1%. Immoral but legal thanks to the sheeple that line up like they're told.

Here in Cyprus the banks are screaming about all the Greek debt they were forced to buy (at gunpoint) and the massive devaluation of said debt. Their bailout started out at 800 million Euros and now the bailout for the entire island is rumored to be 12-15 billion Euros. We're about 1.5 years behind Greece but the collapse here will be just as cataclysmic and we don't have the retail depth that Greece has. The Gov't here upped the VAT to 17% a few months back but that will only make it worse when people stop spending the few Euros they have left.

For Greece the problem is not that they have run out of money. The true problem is that they have run out of polticians with the balls to tell Europe to go and get stuffed. As a result they are left holding a screwdriver (the euro) that is not compatible to their screw (i.e. their economy).

The Europeans on the other hand are happy to take deposits of euros fleeing Greece, are happy to sell armaments to Greece which fears Turkish intentions, are happy to let Turkey be menacing so that Greece is unable to develop her Aegean oil deposits.

The fools at the EU and European banks were happy for a decade to hand over subsidies and loans without collateral and without performance criteria and now they cry foul over Greece's inability to perform when we are at the front door of a worldwide depression.

Disaster beckons us all and it is only our position in the line that differs.

Nobody put a gun to Greek's head and said "and now you have to borrow money". Many of them wanted that Mercedes, that bigger home. Borrowing money, costs money. Don't live above you means. Many in Greek got on that EU-subsidie gravy train. I will give you that the EU knew that the Greek economy was bogus and that much money was disappearing.

John Ward's 'The Slog' says there is a tug of war right now between Germany/euro-zone and the USA, over who will own Greece, and they are competing to bribe or buy the Greek politicians, who are greatly tempted by the US offers which look more generous to them.

The Slog says Geithner has offered the US as Greece's economic 'saviour' after exiting the euro, and then using Greece for not only its mineral wealth, but as a new American central base for the Middle East ... maybe even one that will replace Israel ...

Fascinating stuff, and Ward seems to have a lot of sources. His most recent piece:

There is some truth to this but what has been left out is that Clinton met with the Greek PM very recently to discuss Aegean oil but to also warn Greece not to declare an exclusive eonomic zone without first consulting with Turkey. So the US is not just after Greece but she also wants to secure Turkey's allegiance.

What is being reported and what we know are nothing but crumbs compared to the full behind the scenes goings on, that are either not reported or reported with the truth hidden from sight.

Plenty of oil in that area which Greece, Turkey, Cyprus and Israel all want to have their hands on. US tries to walk awy with it. The US already has a base in Kosovo to guard the minerals there. Just map where the minerals and oil are on the world map, you will find the US army or a base there.

I don't think Iceland was so dependant on entitlements and economic support (e.g. EU structural aid.) They were/are hard working people, that's what makes a successful country. If they would join the EU, maybe in 10, 20 years they'd have the same lazy entitlement mentality as most of the entitled EU, who knows..

When, oh when, will Greece just say enough to this endless tragicomedy and finally pull the plug, letting the chips fall where they may, and extricate everyone from this ridiculous reactionary headline chasing and allegiance to political "fundamentals" driving global stock markets?

When will the people in the EU core stop allowing their "leaders" to put them on the hook to bail out banksters and their "clients"? Even the divide-and-conquer blame game is absurd in that if you actually believe the periphery is peopled by irredeemable parasites, funding the charade is untenable.

Herr und Frau Lieberschauden are going say "Auf wiederseden" and take their Deutschmarks and leave the southern floaters holding a large smelly bag. Germany will collateralize their own banks with their 3,811 tonnes of gold and circle the wagoontz. Own gold and silver and you will survive. Short all cash.

"Luckily, the political environment in D.C. is open and cordial, and a prompt resolution to both the debt ceiling issue and the fiscal cliff, especially as they all coincide just in time for the presidential election is guaranteed."

LMAO. That was great.

And on the idiot channel Jim Grant is on but hardly allowed to say anything. Makes sense since he speaks the truth and that is the last thing they want on this stupid channel.

My friends in the euro and he hates that shit he tells me everyday, he says man i really gotta lose those greeks in the worst kind of way, they sit on their ass he works his hands to the bone to give them money every coupon day, they want more bailouts just to stay at home, well my friend you gotta say.....

Greece needs to get some of that spartan mojo going again, dump this whole Euro leech-craft and strike out on their own again. it's sad and disturbing to see an entire nation suffer as the result of corrupt politicians begging money off a bunch of private bankster criminals selling current and future generations up the river.

Greece has the opportunity to set the example, burn it down and start over, it can't possibly be any worse than what they are enduring now, but it will get worse for them if they continue down this path...

Actually, the current "CR" (or, 'Continuing Resolution') in the U.S. runs out on September 30 (end of the current U.S. Federal Fiscal Year); just prior to the probable debt ceiling breach in mid-October; setting up a wonderful 'government shutdown' fight just prior to the election, a time when resonableness and due consideration shall be in short supply.

One has to wonder at the intersection of all these events, Greece in turmoil, the US in turmoil, Europa in turmoil, the Latin Americans countries squabbling over tarriffs, the african countries in civil war, asia about to meltdown....